Start with Search - Type your requirement here

Thursday, September 4, 2008

SEBI amends Listing Agreement Clauses 16,19,24&41 on 4th September 2008

SEBI today amended equity listing agreement to give effect to the reduction of time period  in case of Rights issue as decided on the previous SEBI Board meeting and also in line with the circular issued on August 28,2008 amending the SEBI (DIP) guidelines and also made certain changes to existing clause 41 (Submission of financial results) based on the decision taken by SEBI's committee on disclosures and Accounting standards and also on the representations received from the various quarters :

Following clauses are amended :Clause 16,19,24 and 41.

1. Clause 16 & 19-:

Notice period regarding Rights Issues: The notice period for intimation of the record date to Stock Exchange (SE) reduced to 7 days in case of Rights issue and the notice period for intimation to SE regarding the Board meeting in which the decision regarding the Rights issue to be taken was reduced to 2 days from 7 days. The reduction in timelines would reduce the market risk faced by an issuer and ensure faster turnaround of money for investors. There are also certain amendments to bring homogeneity in the number of days for notice period and for record date in case of rights issue.

2. Clause 24:

“Fairness Opinion” of independent merchant banker:

To protect the interest of the investor, in case of any scheme of arrangement entered into by the company and to ensure proper valuation is done in those cases , the listed company as well as the unlisted company which are getting merged shall  be required to appoint an independent merchant banker for giving a fairness opinion on the valuation done by Valuers. Further, the “Fairness opinion” of the merchant bankers shall be made available to the shareholders at the time of approving the resolution under Clause 24.

3. Clause 41:

Submission & Publication of Financial Results: In order to bring more efficiency in the disclosures of financial results, it has been decided to modify Clause 41 of the listing agreement. The major modifications are as follows:

a. Time limit for submission of financial results to stock exchanges: A listed entity in addition to submitting quarterly and year to date standalone financial results within one month of end of the quarter may also submit consolidated financial results to the stock exchange within two months from the end of the quarter.

b. Publication of financial results: A listed entity opting to submit consolidated financial results in addition to standalone results to the stock exchanges shall publish consolidated financial results only.

c. Limited review report to be placed before Board of Directors: A listed entity would be required to place the limited review report on un-audited financial results before its board of directors / committee before submission to stock exchanges only if the variation (as defined in present Clause 41) between un-audited financials and financials amended pursuant to limited review for the same period exceeds 10%.

d. Submission of limited review report in case of last quarter: Where the listed entity chooses to submit un-audited financial results for the last quarter (instead of submitting audited financial results for the entire financial year within 3 months of end of financial year), the limited review report shall be submitted for the last quarter also.

4. Applicability:

Changes in Clauses 16, 19, 24 and 41 of the Equity Listing Agreement mentioned above would be applicable with immediate effect. However, with regard to Clause 41, the provisions under sub-clause (VI) item (b) relating to submission and publication of the financial results shall be applicable from the second quarter onwards for the current financial year.

You can access the full text of circular at


Post a Comment

CS Updatin...

See Yes -> Yes, ACS

↑ Grab this Headline Animator